Victoria Bazir
Cardano (ADA) is approaching a make-or-break moment as its price repeatedly tests a major support zone that's been holding the line for months. The big question now: can bulls defend this level, or are we looking at a significant drop ahead?
ADA Playing with Fire at Key Support
According to trader Sjuul | AltCryptoGems, "$ADA is playing with fire here, testing again and again that key support level." He notes that while there's reason to stay optimistic as long as support holds, the reality is simple—the more times a level gets tested, the weaker it becomes. And right now, the daily chart is telling that exact story.
Looking at the ADA/USDT chart, there's been sustained price compression around the $0.60-$0.55 demand zone. This area has worked as a solid floor since mid-2023, soaking up selling pressure time and again. But here's the catch: each bounce has been getting weaker, creating lower highs along the way. That's a classic sign that buyers are running out of steam. Technical projections suggest that if this support cracks, we could see a 48-50% decline toward $0.30—the zone where ADA accumulated back in 2022. That would be the next major liquidity area if things go south.
What's Behind the Weakness?
Cardano's technical struggles aren't happening in a vacuum. Bitcoin's dominance has been climbing through October, pulling liquidity away from mid-cap alts like ADA. On top of that, macro uncertainty is keeping traders cautious. Concerns around U.S. inflation prints and the Federal Reserve's hesitant tone have dampened risk appetite across crypto markets. Sure, Cardano's ecosystem is still growing—DeFi activity is up, network upgrades are rolling out—but none of that has sparked buying confidence yet. Development doesn't always equal price action, especially in a nervous market.
What Traders Are Watching
The technical setup is straightforward. Bulls need to see ADA reclaim ground above $0.70 to signal any real stabilization. On the flip side, a clean daily close below $0.55 would likely confirm the breakdown and open the door to that $0.30 target. The pattern is textbook: repeated tests of support increase the odds of failure. And with each retest, conviction weakens. Right now, ADA is stuck in a tight range, but pressure is building fast.
Victoria Bazir
